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Readymix shareholders agree sale to Mexican parent firm

READYMIX is set to become the latest company to cease trading on the Irish Stock Exchange, after shareholders voted to sell the cement business to its Mexican parent yesterday.

Shareholders in Readymix, the troubled Irish cement-maker, yesterday voted to approve a €27.4m takeover by Cemex group.

At a meeting in Croke Park, 97.56pc of shareholders voted in favour of the 25c per share offer. Cemex already owned 61pc of the company.

In a statement to the Irish Stock Exchange, Readymix said it will now apply to the High Court to squeeze out the shareholders who voted against the acquisition in order to close the deal.

It is expected the hearing will be held on May 8 and trading in the company will cease once the deal is given the green light.

In February, the company's two-man independent committee -- chairman Adrian Auer and non-executive director Donal O'Connor -- said terms on an agreement with the Mexican company had been reached.

Downturn

Mr Auer said the deal "creates an opportunity for shareholders to receive value for their investment", in the face of the firm's financial health and uncertain future.

Readymix reported operating losses of €13m for 2011 and €15m in 2010. The acquisition value of €27.4m, represents a 733pc premium on the 3c per share closing price on the eve of the offer from Cemex earlier this year. However, yesterday Seamus Maye, who has a small shareholding in Readymix and who has family interests in the concrete industry through a number of different firms, opposed the deal.

Mr Maye believes the company is worth far more than the 25c offer, and says the downturn and a failure to cut costs have wiped out shareholder value.

Speaking to the Irish Independent following the meeting, Mr Maye said he was "very disappointed" that the proposed acquisition had been approved. He says he will now examine what further steps he can take in his opposition to the sale.

Irish Independent